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Meggitt PLC (MGGT)

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Tuesday 04 April, 2000

Meggitt PLC

Acquisition of Texas Based S-TEC Corporation

Meggitt PLC
4 April 2000


Meggitt PLC                 01202 847847
Mike Stacey, Chief Executive
Terry Twigger, Group Finance Director

Buchanan Communications     020 7466 5000
Charles Ryland


                         MEGGITT PLC
                              
              ACQUISITION OF S-TEC CORPORATION
             AND S-TEC UNMANNED TECHNOLOGIES INC


Meggitt PLC (Meggitt), the international aerospace and
electronics group, announces it has agreed to acquire S-TEC
Corporation (S-TEC) and S-TEC Unmanned Technologies Inc
(SUTI) from their existing shareholders.  S-TEC, based in
Texas, USA, is a leading supplier of retrofit systems for
autopilots in the general aviation market and is a major
source of original equipment autopilots for new aircraft.
S-TEC will form part of Meggitt Aerospace Systems and is an
important addition to their existing suite of primary
cockpit avionics for the general aviation market known as
MAGIC..  Further, S-TEC's extensive worldwide network of
general aviation dealers will greatly assist Meggitt in
penetrating this sector of the aftermarket.

SUTI designs and manufactures unmanned air vehicles (UAVs)
on the same site as S-TEC.  SUTI will be incorporated into
Meggitt Defence Systems where its range of vehicles will
complement Meggitt's existing range of Spectre UAVs.

The consideration of $24.2m (£15.1m) will be satisfied in
cash and will be financed from existing facilities.  At
completion, Meggitt will also assume indebtedness of
approximately $2.8m (£1.8m).  The acquisition is subject to
approval from the appropriate regulatory authorities, which
is expected to be obtained by early May 2000.

In the year ended 30 September 1999 the companies employed
220 personnel, had sales of $17.5m (£10.9m), operating
profits of $1.5m (£0.9m) and net assets of $5.6m (£3.5m).
In the last year sales grew by over 20%.  The businesses are
currently performing strongly.  In the first full year of
ownership, Meggitt expects to derive considerable extra
benefits from combining S-TEC and MAGIC. products.

Commenting on the acquisition Mike Stacey, Chief Executive
of Meggitt, said:

'Meggitt has identified a major market opportunity to supply
modern avionics into the general aviation market with the
development of its MAGIC. primary instrumentation.  The
acquisition of S-TEC is a further key step in the Meggitt
strategy to offer a comprehensive set of cockpit avionics.
In addition, SUTI's expertise in UAV production will
increase our presence in that growing market.'

                                                                                                                                                                                                                        

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